Methods to Legally Protect Your Real Estate Assets
Most of our life is spent on amassing wealth for ourselves. To protect that wealth long term, real estate asset protection is very important. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. This is one of the best decisions you can make as you build your business. With the right real estate asset protection in place, you are shielded from some of the most expensive risks such as creditor claims. View here some of the common methods to protect your real estate property.
Insurance is one of the most common ways to attain real estate asset protection. The insurance cover you need is determined by the type of asset you are protecting. An increase in wealth means you should increase your insurance coverage as well. For comprehensive coverage, you can decide to get an umbrella policy. Be sure to get professional guidance regarding the policy you will choose for your property.
You can also protect your real estate assets by getting limited liability. This protects your personal assets in all circumstances such as lawsuits. Any issues arising in your business cannot be settled by your personal property. The business stands as a separate entity and as such debtors will not have access to your personal assets. Real estate asset protection can also be achieved by having your commercial assets in different LLCs. This way, if any of the assets face a risk, the safety of the rest of your property is assured.
Anonymous land trust is another important way to get real estate asset protection. This is a good way to protect your property from legal implications. With a trustee, your name will not be found on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. People are also discouraged from filing lawsuits against you with this method. Even before filing the suit, they will have to spend money on revealing your identity. The cost of pursuing the lawsuit might be more than the compensation they are seeking.
Another great way to protect your assets is by titling your home. Being equal tenants with your spouse means you both have indivisible interest in the property. This interest serves to protect your home from creditors if either of you faces a lawsuit. It is important to note that indivisible interest is only valid for your personal residence. For your commercial assets, you’ll need an investment property. Real estate asset protection is made possible with common tenancy.